Indian Stock Indices Reach New Highs Following Inflation Moderation

Indian Stock Indices Reach New Highs Following Inflation Moderation/Pixels

VoM News Desk | June 13, 2024 | 11:04 AM IST | Breaking News | Follow on Google News

Indian Stock Indices Reach New Highs Following Inflation Moderation

Indian Stock Indices Reach New Highs Following Inflation Moderation

Key Highlights:

1. Sensex and Nifty touch lifetime highs due to easing inflation in India and the US.
2. Sensex reached 77,145.46 points; Nifty hit 23,481.05 points.
3. Strong institutional buying supports market uptrend.

Indian stock indices briefly reached new lifetime highs on Thursday morning, continuing their positive momentum from the previous session, driven by a moderation in inflation in both India and the US. Other robust domestic economic parameters also contributed to this trend.

At the time of reporting, Sensex traded at 76,975.71 points, up 369.14 points or 0.48%, while Nifty was at 23,435.20 points, up 112.25 points or 0.48%. Their highs were 77,145.46 points and 23,481.05 points, respectively. Nearly all Nifty sectoral indices were in the green, according to NSE data.

India’s annual retail inflation eased to a 12-month low of 4.75% in May from 4.83% in April, remaining within the Reserve Bank of India’s (RBI) comfort level of 2-6%, though still above the ideal 4% scenario. Inflation concerns persist globally, but India has managed to navigate this challenge effectively.

“There is good news on the inflation front, both in the US and in India,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, attributing the market’s strong performance to the positive inflation data. “The takeaway from the inflation numbers is that the disinflation process is well on track. From the market perspective, this is positive news, particularly for banking stocks.”

The stock markets were also bolstered by strong buying from both foreign and domestic institutional investors. On Wednesday, overseas investors turned net buyers, purchasing shares worth Rs 427 crore, while domestic institutional investors bought stocks worth Rs 234 crore, according to provisional data from the National Stock Exchange. However, foreign portfolio investors have been net sellers of Rs 29,878 crore worth of Indian equities so far in 2024.

Market participants will closely monitor policy decisions by the new government. Finance Minister Nirmala Sitharaman, reappointed to her role, will soon present the full Budget for 2024-25. Ajit Mishra, SVP of Research at Religare Broking Ltd., recommended seeking buying opportunities on dips, focusing on sectors attracting consistent interest.

Indian stocks have recovered significantly following a sharp decline on the day the Lok Sabha results were announced. Although the BJP performed below expectations, the National Democratic Alliance (NDA) secured a comfortable majority. The market’s recovery has been robust, with indices hitting record highs again, boosted by a smooth government transition and improved investor sentiment.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.